Which of the following must occur as a result of ceilings on apartment rents that are set below market clearing rental rates?
A) Property owners respond to the ceilings by increasing maintenance and repairs.
B) Property owners respond to the ceilings by constructing new apartment buildings.
C) There is a decrease in the quantity of apartments that prospective tenants wish to rent.
D) There is a decrease in the quantity of apartments that property owners offer for rent.
D
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A perfectly competitive firm is producing 50 units of output and selling at the market price of $23. The firm's average total cost is $20. What is the firm's economic profit?
A) $23 B) $150 C) $1,000 D) $1,150 E) $50
When banks offer borrowers smaller loans than they have requested, banks are said to
A) shave credit. B) rediscount the loan. C) raze credit. D) ration credit.
Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life will
a. reduce the overall demand for medical services because the elderly will not have to pay for hospitalization in the future. b. place downward pressure on healthcare prices. c. cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. d. do all of the above.
Figure 2-7
Which of the following could explain the shift in the production possibilities frontier from AB to AC in ?
a.
a productive improvement in petroleum production that has no effect on clothing production
b.
a productive improvement in clothing production that has no effect on petroleum production
c.
an increase in the size of the labor force that can produce either petroleum products or clothing
d.
oil drilling in Alaska is ended in order to protect the environment
e.
major oil reserves are discovered off the coast of Africa